Investors sought to withdraw $4.2 billion from two Blue Owl Capital funds in the third quarter, according to shareholder letters released Friday. That was down from $4.7 billion in the previous quarter. The funds will honor 5% of the shares tendered, their customary limit.
The slowdown is an encouraging sign that redemption pressure across the private credit sector may be easing as investor sentiment improves. However, significant backlogs of unfulfilled withdrawal requests remain at some large funds. Blue Owl’s lower volume of new requests is a positive indicator for the firm.
Blue Owl’s stock has declined approximately 45% over the past year.